On 20 May 2022, the Single Resolution Board (SRB) announced an enhancement to its approach to the Public Interest Assessment (PIA) policy in resolution planning.

The PIA is one of the key policies underpinning the work of the SRB. It examines whether the resolution of a particular EU bank that is failing, or likely to fail would be necessary. The SRB published its approach to the PIA in 2019. It gives clarity to the factors the SRB takes into account when conducting a PIA, and explains how it applies the criteria as set out in EU law.

The latest enhancement to the PIA is in the form of an addendum which is intended to bring further clarity to the PIA in relation to Deposit Guarantee Schemes (DGS) pertaining to Resolution Objectives 2 (avoid significant adverse effects on financial stability) and 4 (the protection of covered depositors). In particular the addendum covers:

• Checking whether the requirements specified in the Deposit Guarantee Schemes Directive (DGSD) have been met by national authorities.
• The determination of covered deposits pay-out.
• The assessment of whether the impact of meeting the pay-out on the remaining DGS members places Resolution Objective 2 at risk.

The addendum also includes a schematic for the assessment of DGS-related considerations in the PIA.